Childcare Vouchers

[Tiptopp]

I've been talking to my accountant about childcare vouchers, who initially said that it wasn't possible to take more than the actual cost of childcare, although eventually acknowledged that you are allowed to store up vouchers for future use (although not worth issuing more than £55 per week).

However, she has also tells me that her Inland Revenue contact says that 'Inland Revenue are increasingly looking into the provision of childcare vouchers to directors of companies. He recommended to try to stop such an attack for you to ensure you have a written employment contract with the company stating your salary as well as written documentation showing your salary sacrifice to receive childcare vouchers.'

This employment contract would force me to pay myself minimum wage and issue payslips. This therefore creates a PAYE and NIC charge, which will be more than the benefit of the vouchers.

Has anyone else had advice from their accountant along these lines? If not, I'm likely to take the risk and issue the vouchers myself. If I recall, the best way is to add them to salary (so salary is effectively £155 per week with £55 salary sacrifice to pay for the vouchers).

Any comments?

Regards,

Tiptopp.

[sunincome]

Childcare vouchers

If I am the only employee of my Ltd company, can I qualify for the £55 per week. There are no other employees to prove that the scheme is open to everyone!?

[Chugnut]

If I am the only employee of my Ltd company, can I qualify for the £55 per week. There are no other employees to prove that the scheme is open to everyone!?

As long as you have supporting documentation (design a company poster / memo, seriously) showing that the scheme is available to all employees, you have satisfied the criteria. Your limited may hire further employees, it may not.

[Peoplesoft bloke]

Hmm this raises a good point - I am a director (in fact the only one of myco) - so this seems to imply I can't get the vouchers unless I become an employee.......